Page 116 - DMGT553_RETAIL_STORE_MANAGEMENT

Unit 7: Store Audit

Notes

Caselet Hudsons Coffee

udsons Coffee came into inception satisfying the need for quality coffee with
consistently superior service in a range of convenient locations. The brand has
Hbeen embraced by its customers and through its adoption of a successful franchise
platform the business has seen continued growth, with stores spanning a range of
environments including central business districts, regional areas, airports and hospitals.
BrandM8 is used within Hudsons Coffee to conduct regular store audits across 38 stores
nationwide. Each store has to undergo a regular detailed audit that covers customer service,
product quality, food safety, health and safety, store ambience and cleanliness.
All store audit information is immediately available at head office, allowing them to
benchmark store performance and highlighting areas of non conformance and corrective
action required.

Source: http://www.moboinnovations.com/epos-solutions/compliance-and-audit/case-studies.html

7.4 Stock

Stock management in the retail supply chain follows the following sequence:
1. Request for new stock from stores to head office

2. Head office issues purchase orders to the vendor
3. Vendor ships the goods
4. Warehouse receives the goods
5. Warehouse stocks and distributes to the stores

6. Stores receive the goods
7. Goods are sold to customers at the stores
The management of the inventory in the supply chain involves managing the physical quantities
as well as the costing of the goods as it flows through the supply chain.
In managing the cost prices of the goods throughout the supply chain, several costing methods
are employed:

1. Retail method
2. Weighted Average Price method
3. FIFO (First In First Out) method
4. LIFO (Last In First Out) method

5. LPP (Last Purchase Price) method
6. BNM (Bottle neck method)

Task Gather information on LIFO, FIFO, LPP and BNM. Make a comparative study
amongst them.

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